Commonwealth Numbered Regulations - Explanatory Statements

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FINANCE REGULATIONS (AMENDMENT) 1996 NO. 120

STATUTORY RULES 1996 No. 120

Issued by the authority of the Minister for Finance

Audit Act 1901

Finance Regulations (Amendment)

Finance Regulation 6A

The attached Statutory Rules amend Finance Regulation 6A which was made under subsection 71(1) of the Audit Act 1901 (the Act). Section 2 of the Act provides, in part, that "prescribed authority" means a body corporate, or an unincorporated body, established for or under an enactment, that is declared by the regulations to be a prescribed authority; and includes a branch of the Australian Public Service prescribed for the purposes of the definition.

Regulation 6A of the Finance Regulations declares certain bodies and branches of the Australian Public Service to be prescribed authorities for the purposes of the Act. As prescribed authorities, they are covered by the definitions of "Department" in section 2 of the Act, subregulation 4(1) of the Finance Regulations and regulation 2 of the Finance (Overseas) Regulations.

The attached regulations replace subregulation (1) by:

*       adding the National Competition Council to the list of prescribed authorities. The Council was established under section 29A of the Trade Practices Act 1974 as amended by the Competition Policy Reform Act 1995. This ensures that the Council is subject to the Act and its subsidiary legislation in its own right. That is, it will conduct its own financial administration independently of the Department of the responsible Minister.

*       omitting the previous references to the Automotive Industry Authority, the Merit Protection and Review Agency and to the Textiles, Clothing and Footwear Development Authority.

-        The Automotive Industry Authority no longer exists. Its establishing Act, the Automotive Industry Authority Act 1994, was repealed by the Automotive Industry Authority Repeal Act 1994,

-       The Merit Protection and Review Agency was amalgamated with the Public Service Commission by the Public Service Legislation Amendment Act 1995 to form the Public Service and Merit Protection Commission. That Commission is a prescribed authority by virtue of subregulations 6A(2) and (3) which provide that the branch of the Public Service in relation to which the Public Service Commissioner has the powers of a Departmental Secretary, is a prescribed authority.

-       The Textiles, Clothing and Footwear Development Authority no longer exists. Section 63 of the Textiles, Clothing and Footwear Development Act 1988 provides that that Act shall cease to have effect as from 29 February 1996.

*       making other amendments of a technical nature.

These amendments came into operation on 1 July 1996.

Finance Regulations 74, 74A and 78

The attached regulations amend Finance Regulation 74 which prescribes the kinds of advances which an authorising officer may authorise. The regulation has been amended to include advances to be made to an officer in the Attorney-General's Department or to a private sector legal practitioner for the purpose of making payments on behalf of the Commonwealth in connection with any legal matter in which the Commonwealth is involved.

The amended regulation also provides that this type of advance will to be subject to such conditions as may be approved by the Secretary to the Department of Finance from time to time.

The attached regulations also amend Finance Regulation 74A which declares the kinds of purposes that are purposes to which subsection 36(2) of the Act applies. The effect of the declaration is to exempt particular types of advances from the requirement to repay that part of the advance unexpended at the end of the financial year.

The amendment provides that the settlement of amounts due in connection with a legal matter is declared to be a purpose to which subsection 36(2) of the Act applies.

Finance Regulation 78 has been amended to exclude advances for the settlement of amounts due in connection with a legal matter from the prescribed arrangements for acquitting advances.

The purpose of the amendments to Finance Regulations 74, 74A and 78 is to enhance the current administrative arrangements for repaying advances for the settlement of amounts due in connection with a legal matter. For example, the amendments would permit the Secretary to the Department of Finance to set a repayment date later than 30 June.

These amendments came into operation on the date of Gazettal.